Seagate Reports $4.23 Billion Revenue and Raises Dividend After Strong Storage Quarter

Seagate Technology reported approximately $4.23 billion in revenue for its first fiscal quarter of 2027, an increase of about 61% from $2.63 billion a year earlier. The results, released on October 27, cover the quarter ended October 2 and reflect stronger demand for mass-capacity storage.

The company reported GAAP net income of $1.761 billion, compared with $549 million in the year-earlier period. GAAP diluted earnings were $7.59 per share, while adjusted earnings were $7.68 per share. Adjusted and GAAP figures use different accounting treatments and should not be mixed.

Seagate's GAAP gross margin increased to 57.3%, from 39.4% a year earlier. The company said its heat-assisted magnetic recording technology and product mix helped support profitability. Heat-assisted magnetic recording, or HAMR, is used to increase the amount of information that hard-disk drives can store.

Operating cash flow reached approximately $1.7 billion, while free cash flow was around $1.5 billion. Seagate retired $1.2 billion of debt principal during the quarter and returned $568 million to shareholders through dividends and repurchases. It raised the quarterly dividend to $0.76 per share.

For the second fiscal quarter, management projected revenue of $4.8 billion, plus or minus $100 million, and adjusted earnings of $9.20 per share, plus or minus $0.20. These are forecasts rather than confirmed results.

The results underscore rising demand for storage used by large cloud providers and other data-intensive businesses. Future performance will still depend on customer investment, pricing, competition and trade conditions, and the company's strong quarter does not guarantee continued growth at the same rate.